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The “Countering Domestic Terrorism and Organized Political Violence” memo: What nonprofits must know about the President’s Sept. 25 memorandum

On September 25, 2025, President Trump issued National Security Presidential Memorandum 7 (NSPM-7), titled “Countering Domestic Terrorism and Organized Political Violence.” 

NSPM-7 has significant implications for nonprofits and their funders and represents a significant shift in how federal counterterrorism tools may be applied to domestic organizations. While it creates no new legal authority, it directs aggressive use of existing powers in ways that create uncertainty and risk for tax-exempt organizations – especially those engaged in advocacy and organizing.

The emphasis on “indirect” support and the breadth of activities described as potentially problematic mean that many organizations engaged in legitimate advocacy work may face scrutiny. However, constitutional protections for lawful speech, advocacy, and association remain in effect, and legal challenges to overreach are anticipated.

Nonprofit organizations should focus on strengthening their compliance practices, understanding their rights, and seeking appropriate legal counsel to navigate this evolving landscape. The key is to continue legitimate charitable work while maintaining rigorous documentation and due diligence practices that demonstrate adherence to your tax-exempt purposes and compliance with the law.

Below is a summary of what the memo means for nonprofits and suggested ways leaders and boards can manage the related risks. 

Note: The following does not constitute legal advice. Nonprofits should consult their legal counsel to obtain specific guidance.

What the memo does

NSPM-7 directs multiple federal agencies to coordinate investigations into entities allegedly connected to political violence and domestic terrorism. 

Those agencies, and what they’ve been instructed to do:

  • The FBI’s National Joint Terrorism Task Force and its local offices have been instructed to coordinate a national strategy to investigate and prosecute organizations and individuals engaged in political violence and intimidation. Critically, this includes “institutional and individual funders, and officers and employees of organizations, that are responsible for, sponsor, or otherwise aid and abet” such activity.
  • The Attorney General is directed to prosecute federal crimes related to political violence to the maximum extent permitted by law, and to issue guidance on domestic terrorism priorities including “organized doxing campaigns, swatting, rioting, looting, trespass, assault, destruction of property, threats of violence, and civil disorder.”
  • The Secretary of the Treasury is instructed to identify and disrupt financial networks funding domestic terrorism, examine financial flows, and provide guidance to financial institutions for filing Suspicious Activity Reports (SARs) related to potential illicit funding streams.
  • The IRS Commissioner is instructed to ensure no tax-exempt entities are “directly or indirectly” financing political violence or domestic terrorism, and to refer such organizations – along with their employees and officers – to the Department of Justice for investigation and possible prosecution.
  • All federal law enforcement agencies with investigative authority are directed to question individuals engaged in political violence about organizational and financial sponsorship, prioritizing crimes including conspiracy against rights, money laundering, and material support for terrorism.

What the memo doesn’t do

To give you an idea of this order’s limits, it’s important to note that: 

  • The memo establishes no new legal authority, including laws or legal powers. Rather, it directs agencies to use existing authorities more aggressively in this area.
  • The memo does not change the fact that there is no legal mechanism to make domestic terror “designations.” While the memo mentions potential designation of groups as “domestic terrorist organizations,” there is no domestic terrorism designation regime under federal law, unlike the framework that exists for foreign terrorist organizations. That means such designations carry no automatic legal consequences.
  • The memo has no enforcement powers, but instead is a call to develop strategies and coordinate investigations. It does not itself authorize immediate enforcement actions against specific organizations.

What the memo can’t do

As a memo from the President, NSPM-7 does nothing to affect existing laws or the protections embedded in the Constitution. This means that the memo: 

  • Cannot override constitutional rights: The First Amendment protects lawful speech, advocacy, and peaceful protest. The Fifth Amendment provides due process protections. These constitutional safeguards remain in effect regardless of NSPM-7.
  • Cannot authorize illegal investigations: Even with this language, investigations must comply with existing law. Federal agencies cannot lawfully investigate organizations solely based on their viewpoints, political beliefs, or lawful advocacy activities.
  • Cannot bypass existing legal standards: Tax-exempt status revocations, criminal prosecutions, and other enforcement actions must still meet established legal standards and procedures.

The “indirect” support risk

One of the most concerning aspects of NSPM-7 is its focus on “indirect” support for political violence. The memo specifically directs the IRS to ensure tax-exempt entities are not “directly or indirectly” financing such activities, and instructs the Joint Terrorism Task Force to investigate those who “aid and abet” principal actors.

This language is notably broad and undefined. Legal experts note that, historically, the IRS has only revoked tax-exempt status in rare cases where illegal conduct constituted the primary activity or purpose of an organization. However, the memo’s emphasis on “indirect” connections creates uncertainty about how agencies might interpret these terms during investigations.

The memo does not define what constitutes “indirect” support, leaving open questions about:

  • Grant relationships with organizations later accused of wrongdoing
  • Fiscal sponsorship arrangements
  • Shared staff, office space, or resources with other organizations
  • Advocacy on issues that someone might use to justify violence

Practical steps for nonprofits

While legal challenges to applications of this memo are likely, organizations should take prudent protective measures. 

First, ensure “regular” organizational compliance:

  • Review internal financial controls and accounting practices.
  • Ensure all required tax filings are complete and accurate.
  • Document the charitable purposes and activities of your organization clearly.
  • Maintain strong governance practices, including active board oversight.

In addition: 

  • Create or reconfirm your “no-violence/no-illegality” stance in writing using board-approved language, and circulate a “plain English” staff FAQ that covers what is allowed (lawful advocacy, protest support that is nonviolent and lawful) and what is not allowed (material support for violence, property damage, or illegal activity). See this sample for reference.
  • Understand that some funders/intermediaries may tighten grantmaking and fiscal-sponsor diligence. Grantees may be asked to complete lawful-activity certifications, permitted-use clauses, etc. This will likely also include requests from state or local sources that regrant federal dollars to nonprofits, and may also include fund intermediaries. Proactively send your no-violence/no-illegality stance in writing and ask for them to place it in their files.
  • Georgia nonprofits receiving federal pass-through funds (e.g., HHS/DOE/USDA funding via state agencies) should expect state program officers to echo federal guidance. Prep your documentation now and align with agency FAQs as they appear.
  • Refresh media protocols. Designate leads for media inquiries and “sanctioned” organizational comments; pre-draft holding statements if necessary.
  • Segment funds and document the rationale. Where advocacy or protest-adjacent work exists, ensure that you have segregated accounts or cost centers and clear documentation stating that no funds support unlawful acts. (This complements – but is distinct from – rules about lobbying with federal funds.)
  • Consider a bank relationship check-in, especially if your organization is engaged in organizing or advocacy. Proactively brief your banker on your compliance controls, and confirm that they have accurate NAICS (business industry code) and NTEE (nonprofit taxonomy on your IRS file) info. Why? If your bank has the wrong NAICS (e.g., “political organization” or a high-risk commercial code) or can’t reconcile it with your NTEE, then their screening tools are more likely to trigger false positives, leading to extra document requests, delayed wires, account “reviews,” etc.

Other proactive practices to consider, especially for those engaged in advocacy or organizing activity:

  • Familiarize leadership with First Amendment protections for lawful advocacy and association.
  • Develop a plan for responding to federal inquiries, including identifying legal counsel before any contact occurs.
  • Train staff on their rights in the case that they are approached by federal investigators (including the right to have an attorney present before answering questions).
  • Maintain clear records showing how organizational activities advance your tax-exempt purposes.
  • Document that the advocacy activities your organization engages in are lawful and peaceful.
  • Keep evidence that your organization does not support or encourage violence (such as a written statement; staff policy or guidance, etc.).

Be sure to keep track of: 

  • Agency implementation memos (from the DOJ, DHS, Treasury/FinCEN, and IRS) that may outline indicators, data-sharing, or exam priorities involving nonprofits and funders. 
  • Bank anti-money laundering (AML) advisories related to “organized political violence” that may cause ordinary nonprofit funding and operations to be viewed as suspicious.
  • Emerging litigation related to these issues.

More resources

In summary

NSPM-7 directs the federal agencies to aggressively investigate entities with “direct or indirect” connections to political violence, but creates no new legal authority. Importantly, your constitutional rights remain protected – including lawful advocacy, peaceful protest, and freedom of association. 

Through the memo’s broad language – particularly around “indirect” support – means that organizations doing legitimate work may face increased scrutiny, there are steps nonprofits can take to protect themselves and respond to government overreach.

As always, GCN is here to assist. Please check our US Policy Resource Hub for further information and tools, and be assured that we will provide further information and resources as they become available.

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